Colombia is on the edge of recession, with growth falling below expectations

On Thursday, February 15th, the National Administrative Department of Statistics (DANE) revealed the economic growth of Colombia during 2023.

In the third quarter, the country had teetered on the brink of recession as the Gross Domestic Product (GDP) contracted by 0.3% compared to the same period in 2022.

This time, the agency revealed that the Colombian economy grew by 0.6% in 2023, but the figure was lower than the 7.6% growth seen in 2022, demonstrating the impact of last year’s economic recession.

Economic growth fell below experts’ expectations, which ranged from 0.9% to 1.4%. The slowdown in the economy during 2023 is attributed to the high interest rates decreed by the Central Bank of Colombia.

The construction sector experienced the biggest decline, showing a setback of 4.2%. Meanwhile, manufacturing industries also experienced a decline of 3.5%, along with trade and vehicle repair, which fell by 2.8%.

Among the activities that grew, financial and insurance activities expanded by 7.9%, while artistic and entertainment activities grew by 7%. Also posting positive figures were public administration and defense, with a growth of 3.9%, electricity, gas, and water supply, with a positive variation of 2.1%, and agriculture, which grew by 1.8%.